How much of the loss with the insurance company pay

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Bob had a $75,000 repair bill on his office building after Super storm Sandy hit Staten Island last year. His policy contained the usual 90% co-insurance clause for businesses. His office's replacement value was $350,000; his policy coverage was $275,000 with a $1,000 deductible.

a. How much insurance should he have carried to meet the co-insurance obligation? Show work.

b. How much of the loss with the insurance company pay? Show work.

Reference no: EM13915392

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